US Steel Corp. has agreed to acquire once-bankrupt Canadian steelmaker Stelco Inc. for US$1.1 billion.
The company's acquisition of the last major Canadian-owned steelmaker will make Pittsburgh-based US Steel the world's fifth-largest steelmaker, CEO John Surma told press. The deal will also increase US Steel's exposure to the North American automotive industry, which will grow from 18 per cent to 22 per cent of total shipments.
Mr. Surma also said that it will convert 900,000 tons of slab production at Stelco's integrated steel plant, Lake Erie Works, into production of more value-added steel products.
Hamilton, Ontario-based Stelco emerged from bankruptcy protection in 2006 and has been on the market since June.